By Igal Kvart
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Table of Contents However, it may be provided that the initial fee be refunded less the franchisor’s expenses if the franchisee does not meet reasonable minimum standards of operation of the business following the initial training. 1 In consideration of the rights granted herein, the Franchisee shall pay the Franchisor a royalty equal to ____ % of the Gross Sales. 2 The royalties shall be paid _________ (weekly/monthly/quarterly). Within 7 days after the end of such period, the Franchisee shall deliver to the Franchisor a true and accurate statement of the Gross Sales for the period and the amount of corresponding royalties, which are immediately due.
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There are other systems, where the franchisees pay advertising fees to a fund, to which the franchisor also contributes. In many cases it is not only the franchisor, but also representatives of the franchisees, who jointly discuss how to spend the money in the fund. The following paragraphs provide a basic arrangement for advertising. ). 2 The Franchisee shall submit to the Franchisor for its prior approval all proposed marketing and promotional campaigns and materials, as specified in the Manual or otherwise.